Resimac Group Limited · ASX:RMC
Resimac — H1 2024 Earnings Presentation
29 slides from Resimac's earnings presentation, Feb 27, 2024
Slide 1: 1H24 Results Presentation
RESIMAC GROUP LTD For personal use only 1H24 Results Presentation Scott McWilliam, CEO
Slide 2: 1H24 highlights
Normalised Statutory Return on equity1,2 NPAT1,2,3 NPAT2 (Normalised NPAT) $26.0m $20.3m 12.5% For personal use only 1H24 Cost to income ratio3 Home loan AUM Asset Finance AUM highlights. (Normalised) 48.8% $12.5b $1.0b Home loan Asset Finance 1H24 dividend settlements settlements4 fully franked $2.
Slide 3: 1H24 performance highlights
Growth in Asset Finance AUM grew to $1b with 1H24 settlements of $0.4b, growth driven by the new digital originations platform and increased broker penetration. Strong momentum heading into 2H24. For personal use only Home loan AUM on track for growth in 2H24 1H24 1H24 settlements up 54% vs 2H23. Q2
Slide 4: Economic environment
Economic environment. Owner occupied and investor housing credit activity increasing with competition from major banks moderating. For personal use only Housing credit ($b)1,2 Cash rate (%) 4.35 4.35 +5.7% -15.3% 4.10 HoH 20.2 HoH 19.2 3.10 16.8 17.1 15.6 15.9 +9.2% HoH 8.7 9.5 8.0 0.85 0.10 0.10 Ow
Slide 5: Resimac settlements building and discharges slowing
Resimac settlements building and discharges slowing. Timeline For personal use only End of cash back Australian home loan business shifts to AUM growth initiatives. refinance offers with ADIs. ADIs SCALE RESIMAC BACK CASH DEPLOYED BACK AUM GROWTH 1 June 2023 DISCHARGES ($b) INITIATIVES 1.3 1.1 1.1 1
Slide 6: Wider broker distribution converting to applications
Wider broker distribution converting to applications. For personal use only Home loan growth sourced from a more diversified broker base converting to more applications. Active brokers New broker applications Home loan applications The number of brokers New brokers submitting their Application volum
Slide 7: Portfolio resilience
Portfolio resilience. Risk of credit loss remains low, supported by stabilising arrears, strong payment buffers and borrowers equity. For personal use only Repayment buffers1,2 Credit loss exposure based on arrears3 % of loans Loan value with Dynamic LVR >90% and no LMI ● Prime ● Specialist 14 33% $
Slide 8: Portfolio arrears
Portfolio arrears. Arrears trending inline with industry however, portfolio quality is sound and remains conservatively provisioned. For personal use only 90+ days arrears by product SPECIFIC PROVISIONS $m JUN-21 DEC-21 JUN-22 DEC-22 JUN-23 DEC-23 ● Prime ● Specialist ● Asset Finance Prime 0.4 0.7 0
Slide 9: Performance highlights
For personal use only Performance highlights.
Slide 10: Financial results summary
Financial results summary. For personal use only Normalised NPAT excl. FV 1H24 1H23 2H23 CHANGE CHANGE losses on derivatives $26.0m 1H24 vs 1H23 1H24 vs 2H23 FINANCIAL PERFORMANCE NPAT (normalised)1 (excl. FV gains/losses on derivatives) $26.0m $40.7m $33.0m ($14.7m) ($7.0m) Cost to income ratio (no
Slide 11: Home loan settlements increased 1H24 vs 2H23
Home loan settlements increased 1H24 vs 2H23. For personal use only Home loan settlements ($b) 1H24 home loan ● Prime ● Specialist settlements 2.1 $2.0b 1.7 vs 2H23 $1.3b 0.8 0.7 0.6 1.6 0.7 1.9 1.2 1.7 1.7 2Q24 home loan 1.4 1.4 1.0 settlements 0.7 $1.2b 1.1 0.8 0.5 0.8 0.5 vs 1Q24 $0.8b 0.3 0.3 1H
Slide 12: Home loan AUM
Home loan AUM. For personal use only Home loan AUM ($b) ● Prime ● Specialist ● Other Australian home loan AUM grew in 11.3 12.4 12.9 13.8 14.6 15.3 0.3 14.7 13.1 12.5 12.5 12.5 2Q24 0.3 0.3 0.4 5.9 0.4 5.0 6.1 0.3 0.5 0.2 0.2 0.2 1H24 home 3.8 0.5 3.5 5.8 3.2 5.6 5.5 5.5 loan AUM $12.5b 2.9 9.6 9.3
Slide 13: Strong momentum in asset finance
Strong momentum in asset finance. For personal use only Record asset finance settlements in 2Q24. 1H24 asset finance 1H24 settlements settlements increased Asset finance settlements ($m) $0.4b 36% 220 vs 2H23 170 160 2Q24 settlements 2Q24 application increased increased 38% 27% 110 vs 1Q24 vs 1Q24 3
Slide 14: Portfolio margin
Portfolio margin. Group margin - down 7 bps driven by higher home loans Home loan net interest margin1 (bps) For personal use only cost of funds partly offset by higher asset finance margin. 131 62 Home loan margin - down 14 bps driven by higher cost 175 12 177 of funds and lower new business margin
Slide 15: Funding
Funding. The Group continued to issue significant volume in RMBS in 1H24 ($2.3b across Australia and New Zealand). For personal use only $750m Prime RMBS deal priced in August 2023 at 125bps senior margin. $1.5b Specialist RMBS deal priced in September 2023 at 160bps senior margin. Market conditions
Slide 16: Home loan portfolio composition
Home loan portfolio Dynamic LVR bands2,3 % of total portfolio accounts composition. For personal use only 64% 0-60% 64% Loan type Repayment type Weighted average portfolio LVR1,3 62% 28% 15% 39% Prime Specialist 63.3% 66.3% ● Owner ● P&I 60-70% 15% occupied ● I/O 61% 15% ● Investment 72% 12% 70-80%
Slide 17: Strategic focus and outlook
For personal use only Strategic focus and outlook.
Slide 18: Key focus areas and CY24 outlook
Interest rates Funding Competitive landscape Cash Rate outlook more and capital Normalisation in the favourable to NIM and Broad and diverse prime home loan market portfolio performance. support from as banks refocus on NIM Possible cash rate domestic and management through For personal use only red
Slide 19: Financial results
For personal use only results. Financial
Slide 20: Consolidated statement of profit or loss
HY24 HY23 Interest income 504.7 419.4 Interest expense (412.2) (302.2) Consolidated Net interest income Fee and commission income 92.5 2.6 117.2 1.1 statement For personal use only Fee and commission expense (16.7) (16.8) of profit or Fair value gains on derivatives Fair value losses on derivatives
Slide 21: Consolidated statement of financial position
31-Dec-23 30-Jun-23 31-Dec-23 30-Jun-23 ● Assets ● Liabilities ● Equity Cash reconciliation ($m) Cash and bank balances 1,080.0 1,085.4 Cash at bank and on hand 18.8 22.7 Trade and other receivables 5.5 3.5 Cash collections account 1,061.2 1,062.7 Consolidated Loans and advances to customers Other a
Slide 22: Consolidated statement of cash flows
HY24 HY23 ● Operating activities ● Investing activities ● Financing activities Interest received 511.5 409.1 Interest paid (410.7) (280.5) Consolidated Receipts from loan fees and other income Payments to suppliers and employees 12.4 (84.0) 16.2 (91.3) statement For personal use only Receipts of net
Slide 23: Scott McWilliam, CEO
Scott McWilliam CEO For personal use only Scott is responsible for managing the overall operations of the organisation, its people and resources, and ensures the implementation of the strategy agreed with the Board. Scott has over 25 years experience in the financial services sector. This includes h
Slide 24: Environmental, social and governance
For personal use only Environmental, social and governance
Slide 25: Environmental, social & governance
Environmental, social & governance. For personal use only As an Australian ASX Listed entity providing funding for a number of Australian and New Zealand communities, Resimac is focused on integrating sustainability into all aspects of our business. Resimac acknowledges that responsible business pra
Slide 26: Our ESG purpose
Our ESG purpose. Resimac’s overarching Environmental, Social and Governance (ESG) purpose For personal use only comprises the following key pillars: Passion Inclusion Accountability We understand that it is We recognise that, no We acknowledge that it is our duty to incorporate matter how small, we
Slide 27: Environmental. Social.
Environmental. Social. In conducting our business, we consider environmental factors such The social factors we consider as a business include human rights; as climate change, energy efficiency, reduction of carbon footprint, workplace health, safety and security; community, and stakeholder waste tr
Slide 28: Important notice & disclaimer
Important notice Our & disclaimer. values. For personal use only The information in this presentation provides an overview of the results for the period ended 31 December 2023. It is general background information about the activities of Resimac Group Ltd ('Resimac') and is current as at the date of
Slide 29: Thank you
For personal use only Thank you. Resimac Group Ltd ABN 55 095 034 003 Australian Credit Licence 247829 ASX:RMC